Skip to main content

You are here

Advertisement

Physician, Heal Thyself?

You would think that doctors would be well-set financially, but a new survey finds that in many respects they aren’t much different than the rest of us.

According to Fidelity Investments’ analysis of 13,330 physicians’ workplace savings plans, physicians are saving on average a healthy 19.8% (employer and employee contributions), up from 15.3% in 2012.

However, nearly half aren’t taking full advantage of retirement savings opportunities they have available through their employer: 48% are not maxing out their contributions to a qualified workplace plan, and that’s worse for female physicians (58%) than their male counterparts (45%). Furthermore, 71% are not contributing to a non-qualified retirement plan, such as a 457(b).

According to Fidelity’s Money FIT Physicians Study, 45% of physicians feel they cannot afford to max out their workplace retirement plan. And while they are among the most highly compensated professionals (Fidelity’s business data shows physicians earn an average of $300,000 per year annually) — industry research reveals that 84% of medical students graduate with student debt averaging more than $176,000, with many also juggling expensive practice-related costs.

Many physicians (45%) state they can’t afford to contribute that much money right now, while:


  • 21% would rather keep more money now than put it toward their retirement;

  • 16% say their employer doesn’t match their contributions (which Fidelity says may or may not be true); and

  • 11% don’t know the maximum amount they are allowed to contribute.


The study also found that:

  • 61% feel at least a little confused about navigating their financial path for the future;

  • 42% worry about not having enough money to last through retirement; and

  • 38% are often nervous about the financial decisions they make.


According to the study, most (75%) of physicians rely on financial advice from a financial professional, with use of workplace retirement guidance on the rise, with 21% of physicians taking advantage of this resource (up from 17% in 2012). However, 29% of physicians aren’t aware that their employer offers guidance through the workplace plan provider.

According to the Money FIT Physicians Study, for those that are aware of this benefit, the primary reason, cited by 53%, they haven’t taken advantage of it due to lack of time, though more than a third (35%) don’t think guidance would be helpful.

As for what would motivate them to take advantage of the financial guidance offered by their plan provider, 26% said they would be motivated if classes or experts were available on site during work hours and 22% said if they knew more about the type of guidance offered.

Advertisement